The B2B2C model is ESW’s duty-mitigation structure for brands selling into the US after the removal of the de minimis threshold.

In a traditional DTC flow, duties are typically calculated on the full retail value of each shipment, which increases landed cost and puts more pressure on margin. In ESW’s B2B2C model, the retailer first makes a business-to-business sale to ESW. Title transfers to ESW when the goods are dispatched from the retailer’s country, and ESW then imports the goods into the US at wholesale value rather than retail value. Because duty is calculated on the lower wholesale value, the tariff impact is significantly reduced.

ESW acts as the Importer of Record in the US and manages customs clearance, compliance, and sales tax obligations. Once the goods are imported, ESW makes a domestic sale to the US shopper. The key advantage is that the customer experience does not change. Shoppers still get a normal ecommerce journey, while the backend mechanics shift to reduce duty exposure and operational complexity.

In short, B2B2C is not just a smarter duty calculation. It is a different transaction structure that helps brands sell to US consumers without needing their own US entity, while improving margin retention, reducing compliance burden, and enabling faster market entry.

The B2B2C Model: How ESW drives duty mitigation for retailers entering the US market.

The economics of cross-border selling are undergoing a structural shift. The rollback of de minimis exemptions in the US, tightening EU regulations, and the use of tariffs as a policy tool all point in the same direction: the cost of moving goods across borders is rising — and it won’t reverse.

Most brands respond by improving duty calculations, surfacing costs earlier in the checkout journey, or absorbing the hit to margin. But none of these adjustments change the fundamental nature of the transaction. Every consumer order still crosses the border at retail value, with full liability attached. And with every shipment, that exposure grows.

How does the B2B2C model work to drive margin retention for retailers?

ESW addresses the structural condition that exposes retailers to increased duties in the first place. Rather than working around retail-value imports, we replace them with an entirely different transaction model.

Your shopper notices nothing. Your brand experience remains consistent. The shift happens at the import layer, protecting your margins as the retailer.

This is not a smarter calculation. It is a different transaction entirely.

Transit to ESW.

Ship to the United States.

Customs Clearance. Deliver to Shopper.

B2B sale of goods from the retailer to ESW.

ESW collects the goods from the retailer, or the retailer delivers the goods to ESW.

Transfer of risk to ESW on collection or receipt of delivery of goods (through our carrier).

Retailer is EOR.

Transfer of Title from retailer to ESW on dispatch of goods from the retailer’s country.

ESW imports goods into USA at wholesale value on behalf of the retailer as the importer of record.

Whilst ESW acts as IOR, post-import ESW makes a domestic supply to the shopper in the US. ESW will manage and take care of US sales tax obligations.

Final delivery is straightforward, maintaining a normal ecommerce experience for the end customer.

Retailer’s country border: The retailer is the Exporter of Record. ESW will manage the export on behalf of the retailer.

Shopper’s country border: ESW is the Importer of Record and manages the import and subsequent sale to the shopper under the authority attained at checkout.

Benefits of ESW’s B2B2C Model vs. Traditional DTC Import.

The checkout experience stays identical for shoppers. Behind it, the transaction mechanics change entirely, and so does the reduced duty liability for the retailer.

B2B2C Model:

Traditional DTC Import:

Duties calculated on wholesale value, significantly reducing tariff impact.

Lower landed costs and improved margin retention.

ESW acts as Importer of Record, handling all customs, compliance, and logistics.

Can enable up to 60% duty savings compared to standard DTC flows.

No change to front-end shopper experience, pricing and delivery remain consistent.

Allows rapid deployment (weeks, not months) to respond to tariff changes.

Supports strategic fulfilment optimisation (in-region storage, cross-border balancing).

Proven model used by global brands in apparel, beauty, luxury and consumer electronics.

Duties calculated on full retail value of each shipment.

Higher landed costs, especially post–de minimis removal.

Retailer is responsible for all customs clearance, compliance, and documentation.

More risk of margin erosion due to higher duty exposure.

Longer customs clearance times in some cases, impacting delivery speed.

Limited flexibility to optimise fulfilment or sourcing strategies for duty reduction.

Potential for inconsistent shopper experience if unexpected duties are charged.

Irrespective of who is EOR, from a legal POV, ESW’s solution includes managing all elements of the export.

Sell to US Consumers without the Border Complexity.

The US market doesn’t have to stay locked behind a wall of customs forms and duty bills. The B2B2C model hands the operational and compliance burden to a partner built to carry it, so your brand reaches American shoppers fast, compliant, and duty-optimized.

Stop treating cross-border complexity as the cost of growth. Start treating it as a problem someone else solves. To map out how a B2B2C model could open the US market for your brand, talk to the ESW team about a fulfilment and duty strategy built for your products.

Want to discover more? Talk to Us and let’s discuss how to reduce duty and tariff risk for you and your consumers.

Giulio Cancelli

Giulio's Blogs & Articles

The B2B2C Model: How ESW drives margin protection for retailers entering the US market.